London: US President Donald Trump and European Commission President Ursula von der Leyen claimed that they had reached a trade deal under which the United States would impose a baseline tariff of 15 per cent on European Union (EU) goods.
The announcement was made at a joint press briefing Sunday afternoon following trade talks at the Trump Turnberry in South Ayrshire, Scotland, Xinhua news agency reported.
Although both leaders described the deal as a step toward restoring “trade balance” and promoting more equitable two-way commerce, the agreement allows the United States to impose a broad 15 per cent tariff on EU goods while securing zero-tariff access for a range of strategic American exports. In contrast, the EU has pledged to purchase $750 billion worth of American energy and commit an additional $ 600 billion in investments in the United States.
At the press briefing, Trump claimed the agreement would enable American cars to re-enter the European market and make US agricultural exports more accessible in the EU. He also said that pharmaceuticals were excluded from the agreement, while existing 50 percent tariffs on EU steel and aluminium exports to the United States will remain in place.
However, at a separate press briefing, von der Leyen clarified that the EU and the US had agreed to include pharmaceuticals under the 15 per cent tariff framework. She did not rule out the possibility of further US trade actions in the future.
When asked whether a 15 per cent tariff for EU carmakers-up from 2.5 per cent under the Biden administration-was a favorable outcome, von der Leyen responded that, prior to this agreement, European vehicles faced a total tariff of 27.5 per cent when entering the US market. This included a 25 per cent levy imposed during Trump’s previous term in addition to the original 2.5 per cent. The new 15 per cent rate, she argued, represents a reduction from that level.
Bernd Lange, chair of the European Parliament’s Committee on International Trade, criticized the newly reached deal as “unsatisfactory” and “significantly imbalanced,” warning that it could undermine the EU’s economic stability and job security.
“This is a deal with a slant. Clearly, concessions have been made that are difficult to bear,” Lange said in a statement on Sunday.
Prior to the agreement, over 70 per cent of EU exports to the United States were subject to tariffs, including 50 per cent on steel and aluminium, 25 per cent on automobiles and parts, and a 10 per cent duty on most other goods. Trump had warned that if no deal was reached by Aug. 1, the 10 per cent tariff would be raised to 30 per cent.
(IANS)
